Tuesday, July 13, 2010
MVP RV BUYING TWO FACTORIES IN RIVERSIDE, CA THAT USED TO BE OWNED BY FLEETWOOD
July 13, 2010 by RV Business
Moreno Valley, Calif.-based MVP RV has agreed to buy two factories once used by Fleetwood Enterprises Inc. for $18.6 million, the Riverside Press-Enterprise reported.
Fleetwood Enterprises filed for bankruptcy in March 2009. Since then, the company sold off its RV and manufactured housing divisions as well as factories it owned across the country. The company expects a final bankruptcy plan outlining what its creditors are owed to be approved before the end of July.
The two plants, located north of downtown Riverside off Market Street at 2350 Fleetwood Drive and 5300 Via Ricardo, sit on 36 acres and have 460,000 square feet of space.
According to a legal filing, the offer of $18.6 million, or about $40.43 a square foot, was Fleetwood’s best offer.
The U.S. Bankruptcy Court approved the sale to go forward earlier this month.
The property had been used as collateral to secure a $27.3 million loan from ISIS, a lender which will receive the proceeds from the sale.
The deal is expected to close before Aug. 1, according to a legal filing.
MVP RV had shut down its Moreno Valley plant in the middle of 2009 where it built travel trailers and reopened it in March after receiving funding from an overseas investor.
An agreement MVP RV had to build electric vehicles for South Korean firm CT&T stalled earlier this year.
Officials at MVP RV said negotiations are ongoing.
Brad Williams, CEO of MVP RV, wouldn’t say why his company is interested in buying the plants or if the purchase would affect MVP’s operations in Moreno Valley.
“We can’t comment on it right now,” Williams said by phone.
American Industrial Partners, a New York equity firm which bought Fleetwood’s RV division for $33.2 million in mid-2009, had rented the Riverside manufacturing facilities through November of that year, said Amy Coleman, a spokeswoman for Fleetwood RV, now based in Decatur, Ind.
The new company, known as Fleetwood RV, moved all of its operations to Indiana except for an office it leases in Corona for the company’s chief financial officer, accounting staff and marketing employees, she said.
Moreno Valley, Calif.-based MVP RV has agreed to buy two factories once used by Fleetwood Enterprises Inc. for $18.6 million, the Riverside Press-Enterprise reported.
Fleetwood Enterprises filed for bankruptcy in March 2009. Since then, the company sold off its RV and manufactured housing divisions as well as factories it owned across the country. The company expects a final bankruptcy plan outlining what its creditors are owed to be approved before the end of July.
The two plants, located north of downtown Riverside off Market Street at 2350 Fleetwood Drive and 5300 Via Ricardo, sit on 36 acres and have 460,000 square feet of space.
According to a legal filing, the offer of $18.6 million, or about $40.43 a square foot, was Fleetwood’s best offer.
The U.S. Bankruptcy Court approved the sale to go forward earlier this month.
The property had been used as collateral to secure a $27.3 million loan from ISIS, a lender which will receive the proceeds from the sale.
The deal is expected to close before Aug. 1, according to a legal filing.
MVP RV had shut down its Moreno Valley plant in the middle of 2009 where it built travel trailers and reopened it in March after receiving funding from an overseas investor.
An agreement MVP RV had to build electric vehicles for South Korean firm CT&T stalled earlier this year.
Officials at MVP RV said negotiations are ongoing.
Brad Williams, CEO of MVP RV, wouldn’t say why his company is interested in buying the plants or if the purchase would affect MVP’s operations in Moreno Valley.
“We can’t comment on it right now,” Williams said by phone.
American Industrial Partners, a New York equity firm which bought Fleetwood’s RV division for $33.2 million in mid-2009, had rented the Riverside manufacturing facilities through November of that year, said Amy Coleman, a spokeswoman for Fleetwood RV, now based in Decatur, Ind.
The new company, known as Fleetwood RV, moved all of its operations to Indiana except for an office it leases in Corona for the company’s chief financial officer, accounting staff and marketing employees, she said.
